In the complex and fragmented real estate sector, establishing a standardised development framework can be a transformative tool for developers.

An astronomically growing and increasingly profitable real estate sector in the GCC is encouraging greater consolidation. Often times a single master developer gets involved in the full project value chain: from early ideation, market research and planning to subsequent construction, operations and end-of-life activities. 

But greater exposure to the real estate sector is fraught with perils. For one, real estate is a traditionally fragmented business. It involves a dizzying web of managerial, consulting and construction trades with complicated interdependencies and many unaccounted-for specialised roles. 

Second, particularities of location, the political, physical, climate and social landscapes make every project a challenging venture. And a multitude of codes, regulations and standards add to the entanglement by requiring compliance at every stage, with gates needing multi-level approvals.

But a standard real estate development framework can make work significantly simpler. It is a structured approach that defines major stages from site selection and feasibility analysis, to securing financing, design work, construction and eventual sales or operations. 

The framework describes everything a developer should consider at every stage. Project activities, timelines, interdependencies, risks, types of outputs and financial transactions are outlined in detailed, ensuring projects are executed systematically. Even team and external stakeholders assignments to activities are outlined with clear delegation of authorities.  

The benefits of deploying such frameworks can hardly be overstated and developers can reap a wide range of major awards from deploying them.

> Opportunities to boost earnings

By mapping the complete range of activities, particularly for community developments, downstream revenue-generating assets or services are often revealed. Thus, companies are able to grow by diversifying or spinning off new capabilities that retain earnings.

Examples of these are waste management services or rental of advertisement boards, or even joint ventures with operators in hospitality, retail or district cooling. Not only do frameworks fish out these white spaces, but they support developers to efficiently design their assets with operations in mind.

Emaar is one pioneer in this field. In a double-whammy that both ensures maximum returns and high-end flagship and well-serviced communities like Dubai Downtown or Dubai Hills Estate, the master developer bakes the design and operations of its commercial holdings like business parks, golf clubs, malls or community management services early into its planning processes.

> Optimising designs to save on costs

Because ad-hoc changes are often expensive, early design optimisation is critical. By pre-planning manufacturing processes, construction logistics or operational specifications through a standard framework, developers can optimise design layouts and construction to achieve significant capital and operational savings. 

For instance, by leveraging modular prefabrication or standardised details for elements like cladding, windowsills or handrails, project costs can be reduced. Additional savings can come from bulk procurements of standardised products from single source suppliers that frameworks mandate to be onboarded early. 

Doha’s Stadium 974 is a great example. It is a 40,000-seat World Cup venue that was built from modified shipping containers and modular steel frames. Its “plug-and-play” approach cut overall design costs due to its adoption of modular units and reduction in material waste. Savings were even compounded by lower construction costs due to shortened site works and faster assemblies. 

> Visibility across all lifecycle stages

Very frequently major national and city events such as Expos, Olympics and World Cups impose milestones on large-scale projects. Subsequently, all sub-development streams must be highly regimented to meet them.

By commanding the entire development timeline through a framework, the grand critical path spanning multiple years can be identified. Crashing schedules, overlapping floating activities, and procuring and onboarding contractors for early preparation are common practices.

To cater to the 2022 Fifa World Cup, Lusail Real Estate Development Company (LREDC) constructed utilities and tram systems in parallel to buildings. Also, LREDC set strict design guidelines to avoid late redesigns, contracted developers simultaneously, and strategised prefabricated components and 24/7 construction shifts to compress schedules.

> Mapping activities to maximise involvement 

A codified development process clearly describes the roles of all stakeholders with full transparency. A delegation of authority matrix ensures accountability, maximises employee productivity and approaches partners early for a fully effective contribution. 

For instance, concept designs are multidisciplinary documents known to benefit greatly from the input of sales and marketing or asset management teams. Even external partners such as retail or hospitality operators should be involved. Knowing this is often overlooked. A standardised manual can enforce these teams’ contributions as conditions for design approval.    

> Integration for more sustainable design

Integrated teams are the kernel of sustainable designs. A solid framework with mandated team assignments makes sure engineering, construction, and operations and maintenance personnel all have a seat at the drawing table to design an efficient product from the outset. 

For instance, incorporating specifications from district cooling operators or heat pump contractors allows engineering teams to design envelopes with appropriate U-values, optimising the performance of mechanical systems. Construction waste can be saved from landfills by designing to finishing standards shared early by suppliers.

In Abu Dhabi, the Al-Bahr Towers designers had an integrated facade team involved early on. Architects, facade engineers, technical specialists and contractors worked together to design the adaptive solar screens and mashrabiya-inspired automated shading. The result was improved building energy performance, better occupant comfort, lower glare, and a building envelope that is both aesthetic and functional. 

> Stage gates to guard against deviations

Deviations from initial design intentions often arise due to constraints or requirements such as building codes, tight budgets, high material costs, communication siloes or contractors’ limited know-how. A structured framework, however, can dictate quality reviews at selected stage gates. This ensures the product remains aligned, not only with the initial business plan and design vision, but also with the organisation’s broader goals. 

This issue has been of particular interest to megadevelopers in Saudi Arabia. Many are installing quality assessment controls at major stage gates based on standardised real estate delivery frameworks to deliver high-quality communities that remain true to their original visions and rendered perspectives.

The need for tailor-made solutions

Although real estate processes and activities are generally similar, there is no single blueprint or a ‘one-size-fits-all’ template for a successful framework. Instead, solutions have to be tailored to each institution and for multiple reasons. 

For one, the diversity of corporate divisions and reporting structures makes it difficult to apply a single, standardised model of decision-making. 

Second, smaller developers usually outsource many capabilities, leaving large activity gaps that are not performed internally and cannot be monitored or managed in a similar way to larger corporations.

Third, different development scales – such as district versus building level – by their nature involve different stakeholders, permitting processes, design scopes and operational protocols that challenge standardisation efforts. 

Finally, development rarely unfolds in a linear sequence. Iterations, task leapfrogging and improvised activities are almost a daily routine. These incongruencies will ultimately test the framework’s ability to adapt to real-life situations.

That said, the clear track record of significant gains justifies why developers are stepping forward with the framework initiative regardless of the challenges. It is as the old adage reminds us, “without a master plan, failure is not an accident, it’s an outcome”.

Main image: Dubai Hills Estate